10 Best Investments To Consider In 2024

This post may contain affiliate links and I may receive a small commission if you make a purchase using these links – at no extra cost for you. Please read my disclaimer here.

Investing has become a popular way of having a passive source of income by your side to fulfill several goals and needs. It is an ideal way to grow your wealth and increase your purchasing power over time. As you trade your way up, you are in control of your finances and not the other way around.

If you are an experienced investor, you can agree that 2023 was a good year for stocks. Now that a new year has begun, people want to know what the experts have to say about the best options for investment in 2024.

Here are the best investments you must consider in 2024.

1. High-yield savings account

Based on the track record, high-yield savings accounts have proven to be one of the best investment options through the years. The circumstances are not a lot different in 2024. These accounts are still helping people find a satisfactory amount of interest on their cash.

High-yield savings account

Even risk-averse investors consider a high-yield savings account as a safe option that takes away your worry of losing your money. It is overall a safe option unless unexpected levels of inflation take over and devalue the slow growth of your money in the said account. However, it is very unlikely since the interest rates stay ahead of inflation every year.

Before you choose an ideal high-yield savings account, make sure to explore the list of best options for this year and choose according to your preferences. The decisions you make can determine how your wealth will grow in the future.

2. Dividend stock fund

Before you worry about where to buy stocks, understanding what it is is more important. Dividends are chunks of a business's profits paid to shareholders on a quarterly basis. Unlike most of the stocks, the dividend stock funds offer cash payout.

These stocks can be a great option for anyone looking to earn a steady income. Seeing this assurance can make anyone choose a dividend stock fund over other mediums. However, you may risk your investment if you work with a company without a proven history.

The best way to reduce your risk is to work with companies only with a proven history of dividend increases. Do not go for a tall structure of the number of employees in a company. Always look for a proven track record to secure your basis.

3. Certificates of deposits

Certificates of Deposits, or CDs, are issued by banks and offer a higher interest rate than traditional savings accounts. If you have some money that does not have to be used for some time, you may want to consider long-term CDs to put your money to good use.

CDs are generally known for two amazing features: added safety and high payouts for those who can tie up their cash for a definite amount of time. It can sound like a great opportunity for someone who is a long time away from retirement.

Although CDs are considered a safe investment, they do come with their own risks when the interest rates fall. You must always study market trends before investing in Certificates of Deposits. Unfortunately, this may be expected by people as their purchasing power of investment will be negatively affected.

4. Corporate bond funds

Corporations around the world are interested in raising money by issuing bonds to their investors. If you are considering long-term bonds, remember their age of maturity can be 10 years or longer. Since the rates are expected to fall in 2024, these bonds become an ideal choice for smart investors.

Corporate bond funds

Long-term bonds have an average maturity of 10 years or longer, making them a better choice when interest rates are falling, as they’re expected to do in 2024. They can be an ideal option for someone looking to reduce their risk from investments while earning a steady income.

However, the important thing to remember is that long-term corporate bond funds are not FDIC-insured. There is always a chance that the investor may never get the promised interest payments, which can be a point to note for beginner investors.

5. Series I savings bond

Series I savings bonds are known to be one of the most low-risk and profitable investments. It is known for its ability to adjust to inflation and protect your investments. However, its value is naturally affected when inflation goes down.

The Series I bond adjusts its payment every six months. If inflation continues to rise, the yield will adjust higher and protect your investment against the effects of rising prices. While experienced investors can cater to this factor, beginners may need advice from financial advisors.

While it can be a great investment to consider in 2024, you must remember that the U.S. savings bond is redeemed before five years comes with a penalty of the last three months’ interest charged. Hence, you want to make this call after putting in a lot of thought and consideration.

6. Preferred stocks

Preferred stocks are considered lower in grade as compared to common stocks. Their value fluctuates substantially if the market rate falls. These bonds are easy to understand, even for beginners, without the help of a dedicated financial advisor.

Companies have to pay dividends on preferred stocks before releasing payments to the common stockholders. These stocks offer cash payout, which means that you can get the best of your investments as soon as you need them.

Preferred funds can sound like a great option for stockholders. However, proffered stocks are proven to be riskier than bonds. You must consider your financial circumstances and investment knowledge carefully before investing in preferred stocks.

7. Money market accounts

A money market account is quite similar to a savings account. It offers similar benefits, such as interest payments and a debit card, but may require a higher minimum deposit than a savings account. This factor separates money market accounts from other options in the market.

Money market accounts

Money market accounts offer considerably higher savings than average savings accounts. In addition, a money market account also ensures that you can spend your cash when needed. However, there may be certain withdrawal limits that you may have to obey. Looking for the best is up to you to maximize your returns on this investment.

An important thing to consider before investing in money market accounts is that they are protected by FDIC. You may not be able to keep up with inflation if you invest only in money market accounts. It means that these accounts can affect your purchasing power over time.

8. Fixed annuities

Annuities are contracts made with insurance companies. These contracts provide you with a  level of income over time in turn for your investment. This investment can be structured in several ways to pay you over a fixed amount of time.

Fixed annuities are created in the form of contracts and promises to pay a specific amount of money periodically, either immediately or at a future date. The payment you receive is based on the amount you pay and how you pay it.

Fixed annuities are known to provide unmatched income and great returns on a tax-deferred basis. This option is usually explored by people closing into retirement to ensure a steady income in the time they are not working. It can last till the duration of the contract.

9. Government bonds

Government bonds are a great opportunity for investors to reduce instability in their financial portfolios. A government bond is simply a loan given to the government by individuals as a way of boosting their savings for a better future.

Government bonds

These bonds act as a promise from the government that you will receive your interest after a fixed period. The time range for government bonds can lay anywhere from one to thirty years. While government bonds are considered one of the most risk-free ways to grow your wealth, being backed by the government does not make it completely risk-free.

Default risk, interest rate risk, inflation risk, reinvestment risk, liquidity risk, and call risk are just a few of the risks associated with government bonds. If you are not sure about the government bonds being the right investment for you, you can ask a financial advisor for advice.

10. Exchange-traded funds

Once you look into different types of funds, you may think that there is not a lot that sets exchange-traded funds (ETFs) apart from other bonds. It is true to some extent because the only difference you see while selling these types of investments.

ETFs are a great option for building investment portfolios. These funds come with ticker symbols that are available through brokerages to take your mutual funding goals to the next level. Flexible trading, greater transparency, and better tax efficiency are just a few of the reasons that make exchange-traded funds (ETFs) a top choice for new investors.

The most notable risk of an ETF is that it may hold bonds with different lengths, each experiencing a different rate risk. Such changes can make investors feel uncertain about every next step they may take as an investor.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}